TRUE/FALSE
1. The systematic process of regulating organizational activities to make them consistent with the expectations in plans, targets, and standards of performance refers to organizational control.
2. Managers are increasingly recognizing the need to measure intangible aspects of performance such as customer service.
3. The feedback control model is a comprehensive management control system that balances traditional financial measures with measures of customer service, internal business processes, and the organization's capacity for learning and growth.
4. Managers focus on the various elements of the scorecard to set targets, evaluate performance, and guide discussion about what further actions need to be taken.
5. The final step of the feedback control model is to do nothing if performance is adequate or to take corrective action if performance is inadequate.
6. The fourth step in the control process is comparing actual activities to performance standards.
7. An expense budget lists forecasted and actual revenues of the organization.
8. A cash budget estimates receipts and expenditures of money on a daily or weekly basis..
9. An expense budget lists forecasted and actual revenues of the organization.
10. Zero-based budgeting requires a complete justification for every line item in a budget.
11. Bottom-up budgeting is a process in which lower level managers anticipate their department's resource needs and pass them up to top management for approval.
12. Liabilities are the firm's debts, both current and long-term.
13. Frequently calculated ratios typically pertain to activity, passivity, and profitability.
14. An activity ratio that measures how many times the inventory is turned over to meet the total sales figure is called the inventory turnover.
15. Under hierarchical control, employees are actively engaged and committed to their work.
16. Companies today are increasingly shifting from a hierarchical control process to one that is more decentralized.
17. A process in which lower level managers anticipate their department's resource needs and pass them to top management for approval is called top-down budgeting.
18. Open-book management ties employee rewards to the company's overall success.
19. Closed-book management helps employees appreciate why efficiency is important to the organization's success as well as their own.
20. A Six Sigma process will typically result in one defective package of product for every three truckloads shipped.
21. An organization-wide commitment to infusing quality into every activity through continuous improvement defines Six Sigma.
22. The implementation of total quality management involves the use of many techniques such as quality circles, benchmarking, Six Sigma principles, reduced cycle time, and continuous improvement.
23. Outsourcing is the continuous process of measuring products, services, and practices against the toughest competitors or the industry leaders.
24. Six Sigma is most beneficial when employees have challenging jobs.
25. The certification based on a set of international standards for quality management, setting uniform guidelines for processes to ensure that products conform to customer requirements is the ISO certification.